Trimer Corp Junks a Truck Which Was Originally Purchased for $50,000

question 122

Essay

Trimer Corp junks a truck which was originally purchased for $50,000 and had accumulated depreciation of $30,000. Give journal entry for disposal of truck.

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Definitions:

Inventories

Goods and materials that a business holds for the purpose of sale or production in the future.

Autonomous Investment

Investment that is not influenced by the current level of income or production, often driven by technological innovations or changes in policy.

Aggregate Expenditure Line

A visual depiction in macroeconomics illustrating the overall expenditures on goods and services within an economy across different income levels.

Marginal Propensity

The tendency of a person to spend an additional unit of currency; often relates to income in the context of marginal propensity to consume or save.